New American Funding vs Better.com
New American Funding and Better.com are both highly rated mortgage companies on BestCompany.com:
- 97% of New American Funding reviews are 5-star.
- 95% of Better.com reviews are 4-star or 5-star.
With overwhelmingly positive reviews, both companies could be a good choice for your mortgage needs.
However, there are key differences, such as available loan types, refinance options, and state availability, that could impact your choice between the two companies.
Jump down to read a detailed comparison of both companies or helpful FAQs.
Overview
New American Funding
3%
620
FHA, VA, USDA
30 Days
22 Years
Better.com
5%
620
FHA
20–30 Days
8 Years
Ratings
New American Funding
Better.com
Pros & Cons
New American Funding
PROS
- Online mortgage process
- On-time closing guarantee
- Home equity loan options available
- Mortgage payment assistance provided (if necessary)
CONS
- Higher than average mortgage rates
- Not licensed to lend in Hawaii
Better.com
PROS
- Online application process
- No lender fees
- Highly-rated customer service
CONS
- No VA or USDA loans
- No home equity loan options
Reviews
New American Funding
Reviews
Better.com
Reviews for New American Funding
Helpful Favorable Review
Marie Harrison
November 22nd, 2022
Virginia Beach, VA
Review Source
I love New American funding because they care about they customers, no cutting corners. Always fund the best deal for you , give you good advice ,to keep you house up to date.I will always refer anyone to them.
Helpful Critical Review
Tom Oliver
August 31st, 2022
Manassas, VA
DETAILS
Review Source
Employees I dealt with were great. Steven and Stephanie were knowledgeable and efficient. New Americans Rate and Fee advertisements were VERY misleading and borderline merit false advertising. Great Experience, but at higher rates / fees than expected, advertised or available through other lenders. Will solicit for future projects and loans, but will shop around prior to committment.
Reviews for Better.com
Helpful Favorable Review
Luke Swierczynski
November 10th, 2021
Troy, MI
Edited January 28th, 2022
Review Source
Was curious how the experience would be given all the advertisements they had. When purchasing our current home I did get a quote from Better.com but despite advertising zero commission or lender fees they still cost more than the company I ultimately used for my mortgage. I wouldn't recommend them purely based on the cost involved. I personally wouldn't use them but for a certain type of borrower it might make sense. It just didn't click for me.
Helpful Critical Review
Robert Kudler
November 9th, 2021
Merrick, NY
DETAILS
Verified Customer
Review Source
They have higher rates than competitors. Loan officers are often very young. I closed one loan with them but then they couldn't refi another house I own because they said they can't include the rental income from the property which makes no sense. This was weeks after I initially applied and I had a high interest loan so I wasted thousands waiting on them to eventually tell me they can't help me.
The Final Word
Even though New American Funding and Better.com are both highly rated by customers, both companies may be better suited to specific needs — New American Funding offers a greater range of loan products and refinance options, while Better.com offers incomparable online convenience.
Let’s take a closer look at how the companies compare:
Mortgage Rates
Loan Types
Refinance Options
Mortgage Process
State Availability
Customer Reviews
Mortgage Rates
New American Funding and Better.com both provide daily update mortgage rates on their websites. In a quick comparison, Better offers lower rates than New American Funding. In fact, New American Funding’s rates are higher than the government-reported rate median for all mortgage lenders.
Keep in mind that advertised rates are typically the lowest available and are based on perfect qualifying parameters — high credit score (700+), down payment of at least 20 percent, etc. Thus, if you are considering either New American Funding or Better, you should pre-qualify with both companies to see what rates you may qualify for based on your specific financial situation.
Loan Types
New American Funding and Better.com offer the following loan products:
If you are looking for a conventional loan (fixed or adjustable), the more popular choice for homebuyers, either New American Funding or Better would be a good choice. Both companies also offer FHA loans, which can be a good option for first-time homebuyers or those who need greater flexibility in credit score and down payment requirements.
However, New American Funding offers several specialized loan products such as the I CAN Mortgage and Buydown Loan.
The I CAN Mortgage allows homebuyers to customize their loan term from 8 to 30 years, while the Buydown Loan provides options to reduce your mortgage rate.
Refinance Options
You can refinance your current home loan with either New American Funding or Better.com.
However, if you are looking for options to tap into your home equity, only New American Funding offers home equity products in this case. New American Funding offers the following home equity refinance options, in addition to traditional rate and term refinancing:
- Cash Out Refinance
- Home Equity Line of Credit (HELOC)
- Reverse Mortgage
Depending on your situation and desired outcome from your refinance, either company could be a good option.
Mortgage Process
While New American Funding has a variety of loan products, Better.com stands out with its acclaimed online application process. The majority of Better.com reviews mention how fast and easy it is to apply for a Better mortgage, including uploading documents and navigating the online customer portal.
New American Funding does also have an online application process, but if you are looking for the fastest and easiest online application, Better.com would be a good choice for you.
State Availability
Both New American Funding and Better.com operate nearly nationwide.
Customer Reviews
New American Funding and Better.com are both highly rated companies with more than 95 percent of customers awarding them 5 stars.
Top praise for New American Funding includes the following:
- Knowledgeable and professional loan officers who help you each step along the way
- Quick customer service response times
Better.com is also highly praised for its customer service and fast response times, helping homebuyers get answers to their questions and concerns without delay. However, Better stands out in its reviews because of its online convenience. The Better mortgage process is handled entirely online from start to finish, providing access to a customer portal where borrowers can upload documents, manage their mortgage application, and receive live updates on their mortgage progress.
Based on customer reviews for both companies, it appears that either would be a good choice for a mortgage. A deciding factor between New American Funding and Better.com could be whether or not you’d prefer everything to be online or if you’d like some interaction with a loan officer who can help you throughout the mortgage process.
Whether you choose New American Funding or Better.com for your mortgage needs, customer reviews indicate that you will likely have a positive experience with either company.
Frequently Asked Questions
Is New American Funding a broker or a lender?
New American Funding is a privately owned direct lender and one of the largest in the country. The company is a Fannie Mae, Freddie Mac, and Ginnie Mae direct mortgage lender, servicer and seller that services and sells loans in-house. While the company strives to service the majority of loans it originates, your loan my be sold to another mortgage servicer in the New American Funding network.
Is Better.com a direct lender?
Better.com is a direct lender, originating and underwriting loans in-house. However, after closing your loan will likely be sold.
How long does it take New American Funding to close on a home loan?
New American Funding's average closing time is 35 days, which is faster than the industry average of 40 to 65 days.
How long does it take Better.com to close on a home loan?
Better.com doesn't disclose an exact closing time for its mortgage loans. However, Better.com reviews frequently mention how fast the company was able to get from application to closing, indicating that its closing time is extremely competitive compared to other mortgage companies.
